Will the Nasdaq and S&P 500 slow their record run? Here’s what futures trading suggests – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

U.S. stock futures are pointing to a flat start to the week, with the overall market perched at a record high, buoyed by the tech rally. Recent strong gains are likely making traders extra cautious ahead of some of the market-moving catalysts expected this week. Federal Reserve Chairman Jerome Powell US President Donald Trump heads to Capitol Hill this week to deliver his semi-annual monetary policy address. Bond yields are rising on interest rate uncertainty.

Traders can also watch the Fed’s consumer credit report. M&A news could dampen any potential downside moves during the session. Global cues are mixed, with Asia down across the board, while European stocks opened firm. Commodities are trading lower.

In pre-market trading on Monday, the SPDR S&P 500 Exchange Traded Fund TO SPY slipped 0.03% to $554.47 and the Invesco QQQ Exchange Traded Fund QQQ edged down 0.-4% to $495.97, according to data from Benzinga Pro.

Clues to the latest Week:

Wall Street rallied sharply in the week ended July 5, helped by Powell’s dovish remarks and a string of weak data that raised hopes for rate cuts this year. The Nasdaq Composite and the S&P 500 index closed the week at new intraday and closing records.

Analysts’ views:

Based on history, stock prices are likely to rally further this week. Ryan Detrick, chief market strategist at the Carson Group, said in an article on X that the first half of July is historically one of the most bullish periods of the year for stocks.

He also noted that the S&P 500 index has risen in all four trading sessions so far in July. He added that the index has not posted five consecutive gains since 2007, with the longest winning streak dating back to 10 sessions in 1989.

Upcoming economic data:

Fed Chairman Powell is scheduled to deliver his semiannual address to Congress in two days, and his comments will be the most sought-after catalyst of the week. Traders will also have a chance to digest a double dose of inflation data and an early reading of consumer sentiment for July.

A series of Fed speeches are also scheduled for the week.

On Monday, the Fed will release its consumer credit report for May at 3 p.m. ET. Economists on average expect outstanding consumer credit for the month to increase by $8 billion, faster than the $6.4 billion the previous month.

The Treasury will auction three- and six-month bonds at 11:30 a.m. EDT.

See also: Best Strategies for Futures Trading

Featured actions:

Global Commodities, Bonds and Stock Markets:

Crude oil futures extended losses from Friday and gold futures also declined, while the benchmark 10-year Treasury yield rose 3.1 points to 4.303%.

Bitcoin Bitcoin/USD stemmed the decline and traded around the $57,000 mark.

Asian markets fell broadly, with Hong Kong and China markets leading the decline on fears of an escalation in the trade war between China and Europe. Traders also remained cautious ahead of the release of inflation data from China on Wednesday. Taiwan’s market bucked the downtrend. Major European markets were higher in early trade after the left’s surprise victory in the French elections.

Read more :

Photo via Shutterstock